Article 268 of Constitution of India – Duties levied by the Union but collected and appropriated by the States
Article 268 of Constitution of India deals with Duties levied by the Union but collected and appropriated by the States
Original Text of Article 268 of Constitution of India
Such stamp duties 2*** as are mentioned in the Union List shall be levied by the Government of India but shall be collected—
(a) in the case where such duties are leviable within any 3[Union territory], by the Government of India, and
(b) in other cases, by the States within which such duties are respectively leviable.
(2) The proceeds in any financial year of any such duty leviable within any State shall not form part of the Consolidated Fund of India, but shall be assigned to that State.
Questions related to Article 268 of Constitution of India
According to Indian Kanoon, Article 268 of the Indian Constitution deals with the distribution of certain duties like stamp duties and excise duties on medicinal and toilet preparations, which are levied by the Centre but collected and appropriated by the States.
Article 268 is significant among the Articles of Indian Constitution because it provides financial powers to the States by allowing them to collect certain Union duties, thereby ensuring fiscal federalism under the Constitution of India.
As per Article 268 of the Indian Constitution, stamp duties on certain financial documents and excise duties on medicinal and toilet preparations containing alcohol or narcotics are covered. These are levied by the Union but collected by the States.
Article 268 of the Constitution of India ensures that although the Centre levies certain duties, their collection and appropriation go to the respective State governments, empowering them financially within the federal structure, as mentioned in Indian Kanoon.
You can read the complete text and legal details of Article 268 of the Indian Constitution on Indian Kanoon. Alternatively, UPSC aspirants can refer to simplified notes and explanations on 99notes.in for a better understanding of Articles of Indian Constitution.
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